How to pass specific entry

A/c entries 1230 views 5 replies

ranjitkarmakar

service

313 Points Joined May 2008

Respected Senior,

My client haveing mobile auxiliary service, in a financial year my client use to purchase mobile recharge coupon from Airtel for Rs. 40 Lac for that he deposited cash in bank which was collected from customer during day and in next day he use pay Airtel through neft for recharging coupon. For that service he only get some commission from Airtel. Now my question is how I pass the entry for the above transaction Rs. 40 Lac in my client book in a financial year. As this 40 Lac which he was collect from customer for recharge is not his direct sale. And also he make payment Rs. 40 Lac through bank to Airtel, this also his not direct Purchase. So Please clarify how I transact this entries and where I show this in Profit & Loss A/c. Please help me. Thanks with regard

Replies (5)

CA Pooja Agarwal

Chartered Accountant

3228 Points Joined August 2011

deposit with airtel ..dr

to bank a/c 40 l

bank a/c ...dr

to collection from sale

commission a/c ..dr

to pl a/c

Guest

Cash

To payable to Airtel

To commission receivable from airtel

(Being recharge voucher collection received from customer and payable to Airtel)

Bank

To cash

(Being cash deposited in bank)

Payable to Airtel

To Bank

(Being amount paid to Airtel)

Commission receivable from airtel

To P&L

(Being commission receivable from Airtel booked in P&L)

CA Lokesh Pokharna

CA (Ahmedabad Bhilwara Chittorgarh)

4128 Points Joined November 2009

ultimate essect will be as under

P & L increase by comission amount in credir side of b/s

cash/bank a/c will increase by same amt in b/s. i.e. comission amt.

other accounts if any remain unclosed , should be closed by journal entry

customer a/c

to deposit with airtel a/c

ranjitkarmakar

service

313 Points Joined May 2008

Thanks - Pooja Jee, Vicky Jee & Lokesh Jee for your reply.

The recharge value of coupon which we sale or purchase can not treat it as a sale or purchase in trading account. So in which Group I shall put Payable to Airtel account.

In my opinion Payable to Airtel Account should be come on Investment Group, as it is not our sale or purchase and also at the end of the year the remaining balance also not treated as Closing Balance.

Please share your view. Thanks